Cresta Marakanelo Group Managing Director Mokwena Morulane says the group will achieve growth both organically and inorganically and is measured by the increase in the group’s cash flow generated over time.
Organic growth is the growth rate that a company can achieve by increasing output and enhancing sales through customer base expansion, or new product development, Morulane explained in the group’s annual report for 2017.
Inorganic growth will be pursued through a combination of expanding existing facilities, new developments and acquisitions. Cresta’s MD has described the group’s 2017 performance as subdued with depressed overall financial performance compared to the prior year.
This was after the group went through a big scandal the previous year when the then MD and his chief financial officer were suspected to have fleeced millions of Pulas.
The prior year also recorded lapses in governance processes within the Group, which resulted in restructuring of the leadership and a complete review of the internal control system, which was completed in 2017.
Despite a marginal increase in revenues, the Group’s operating profit declined by 26 percent from P44.9 million in 2016 to P33.0 million in 2017. Cresta’s earnings per share also registered a decline of 29 percent from 20.32 Thebe in 2016 to 14.47 Thebe in 2017.
Morulane says towards the end of 2017, the group crafted a Strategic Plan for the five-year period from 2018 to 2022.
The five main pillars of the Strategic Plan cover the broad areas of human resources and capacity building; growth; information communication and technology; marketing and cost optimisation.
Cresta Chairman, Moatlhodi Lekaukau, says the group has embarked on significant refurbishment projects of properties in 2018 with over P40 million earmarked to be spent on three properties this year.
“This drive for product refreshing and improvement will continue into 2019 and we expect improved occupancies across all our properties,” Lekaukau said, adding that the Group also continues to explore regional growth opportunities in order to diversify its portfolio and further unlock shareholder value.